LongCut logo

Top 4 AI Indicators on TradingView (Tested and Ranked!)

By Trading Notes

Summary

Topics Covered

  • AI Eliminates Emotional Trading Deviations
  • Cluster Volatility for Momentum Holds
  • Nearest Neighbors Excel in Ranging Reversals
  • Lorenzian Tracks Real-Time Trend Weakening
  • SFX Algo Delivers 74% Win Rate Backtested

Full Transcript

One of the hardest parts about trading is sticking to a set trading plan. We've

all diverged from our plan at least once. [snorts]

once. [snorts] Whether that's exiting late, entering early, or moving a stop-loss, AI will always stick to that trading plan no matter what. No emotions, no panic, no

matter what. No emotions, no panic, no just this one time, I'll move my stop-loss. And there's another power

stop-loss. And there's another power that AI brings to the table. Machine

learning. It's a branch of artificial intelligence that focuses on using data and algorithms to imitate the way humans learn. Think about that for a second.

learn. Think about that for a second.

While most traders are stuck using indicators from the 1980s, there is a new breed of tools that actually learn from the market. Having access to these indicators gives you an edge that most

retail traders don't have. Today, I'm

ranking four AI indicators on Trading View from fourth place to first. For

each indicator, I'll share the weaknesses you need to watch out for, the strengths that make them valuable, and exactly how to use them to boost your profitability. So, let's get

your profitability. So, let's get straight to it. In fourth place, we have something called the adaptive super trend on Trading View. Now, if you've used the original super trend indicator

before, you know it has one major flaw.

The calculation is only based on a fixed amount of factor and length for ATR.

What does that mean for you? This

indicator can't adapt to current market conditions. It's just using a fixed look

conditions. It's just using a fixed look back period to calculate whether the line sits above or below price. This new

version has the ability to learn from past data and adapt to current market conditions. To add this new super trend

conditions. To add this new super trend to your chart, click on indicators and search for machine learning adaptive super trend, the one by Algo Alpha. Let

me show you what makes this indicator special. Machine learning is introduced

special. Machine learning is introduced here through something called K means clustering. This is a technique that

clustering. This is a technique that categorizes market volatility into three distinct levels. High, medium, and low.

distinct levels. High, medium, and low.

Why does this matter? Because this

categorization allows the super trend to adjust more precisely to varying levels of volatility. In this table, you can

of volatility. In this table, you can see the three levels of volatility laid out clearly. High, medium, and low.

out clearly. High, medium, and low.

Three for high volatility, two for medium, and one for low. Now watch what happens on the chart. The candles are marked with these numbers based on detective volatility. When you see the

detective volatility. When you see the number three, the momentum is absolutely incredible. This is when you want to

incredible. This is when you want to hold your position. But when it drops to two, that's your signal to start thinking about closing your positions or at least reducing your size. Looking at

the indicator settings, the first option you'll see is the ATR length. This

indicator incorporates the average true range just like the traditional super trend. To understand the average ATR

trend. To understand the average ATR values associated with different volatility types, we can examine the cluster centrid values in the table. For

example, when you're in high volatility with cluster 3, the centroidid ATR value is this one. What this tells you is that on average, candles marked with number three have an ATR of this value for at

least the last 100 bars. For medium

volatility with cluster 2, the average ATR is this value. And for low volatility with cluster one, the average ATR is this one. Again, calculated over the last 100 bars. Here's something

fascinating. Within the past 100 bars, you can see exactly how often each cluster appeared. Cluster number three

cluster appeared. Cluster number three occurred this number of times. Cluster

number two occurred this number of times and cluster number one occurred this number of times. When you're actually using this indicator in your trading, you need to consider both the volatility

level and the cluster size. An ideal

scenario would be to focus on the highest volatility level with the largest cluster size. Let me give you a practical example. In high volatility

practical example. In high volatility markets with cluster three showing up, you don't want to make buy or sell decisions if the cluster size for number three is the smallest on the table.

Instead, make sure it's the largest of the three clusters before you pull the trigger. This table also displays the

trigger. This table also displays the current volatility level for your convenience. Next, we have a trend cloud

convenience. Next, we have a trend cloud that changes color between red for bearish trends and green for bullish trends. During transitions between

trends. During transitions between trends, the indicator prints red and green labels to mark the transitions from bearish to bullish and from bullish to bearish. These labels can also be

to bearish. These labels can also be used as buy and sell signals if you want to keep things simple. Let's take a closer look at the settings panel. The

ATR length determines the period used for calculating the ATR while the super trend factor acts as the multiplier in the super trend calculation. The

training data length is the look back period defining how much historical data is used for training. The values

displayed here represent percentile values which are used to set the initial guesses for clustering. You can adjust them to observe how they impact the generated signals. Lastly, you can

generated signals. Lastly, you can customize the indicator's appearance by modifying colors to match your chart style. Now, let me tell you about the

style. Now, let me tell you about the weakness of this indicator. This doesn't

perform well in pullbacks or during flat markets. When the market is stuck in a

markets. When the market is stuck in a trading range and not trending one way or the other, you're going to encounter many false signals. To filter these false signals during flat markets, like the ones we have right here, there's a

simple solution. Add ADX to your chart.

simple solution. Add ADX to your chart.

That's the average directional index.

This helps you distinguish between trending and non-trending markets. When

the ADX line is below 20, it shows that the market is not trending. That means

you should not enter any trade. Look at

all these false signals we have here in this flat market. They're completely

filtered by the help of ADX because the ADX line is below 20. Coming in at third place, we have an indicator programmed using a machine learning technique called nearest neighbors. This one

provides buy and sell labels to help identify market direction. We can access it by searching machine learning triple K new approach. Select this one, Capisimo. Go ahead and add it to your

Capisimo. Go ahead and add it to your chart. Right out the gate, we can see

chart. Right out the gate, we can see that this indicator is extremely good at catching short-term market changes. If

we happen to be in a ranging market, this indicator will perform incredibly well as it tries to catch the start of reversals very quickly. Look at what happens here when we're ranging. there's

a sell signal appearing before the market has fully transitioned. Due to

this reactiveness, when we're in a trending market, the indicator will sometimes provide these false early signals. This is both its strength and

signals. This is both its strength and its weakness. So, when using this

its weakness. So, when using this indicator, it's best to pair it with a moving average or some other trend detection tool to only execute trades in the long-term trend direction. As a

result of how this indicator works, it's ideal for traders who want to get in and out of the market quickly for fast profits. If that's your style, this

profits. If that's your style, this could be exactly what you're looking for. If we go into the settings of the

for. If we go into the settings of the indicator, we can see that we have a number of options relating to how the data is processed. The important

settings that you need to remember here are the indicator option and the filter option. The indicator option controls

option. The indicator option controls how many indicators the nearest neighbor algorithm uses to determine the buy and sell signals. The filter option attempts

sell signals. The filter option attempts to filter out bad signals. While it's

not perfect, it does help significantly.

Let me show you what happens if I set this to none. You'll notice there are a lot more signals now being displayed on the chart. And quite a number of these

the chart. And quite a number of these signals are not good at all. So, I would recommend leaving it on both to keep your chart clean and your signals reliable. Once again, this indicator is

reliable. Once again, this indicator is designed for short-term trading. If

you're looking to get in and out of the market quickly, scalping or day trading, this might be a good indicator for you.

The drawbacks, the indicator does not do well in holding long-term trends. There

are also occasionally times when this indicator will repaint signals in the replay mode due to how signals are processed. That's something you need to

processed. That's something you need to be aware of before you start relying on it for live trading. Climbing up to number two, we have an indicator that is far better at holding long-term trends

and is excellent to use alongside your analysis to determine market direction.

This indicator is called machine learning Lorencian classification by this guy JDE Horty. This indicator has a lot more features than the previous one and is far more customizable.

Immediately, the first thing we notice is that this indicator displays candles as a color gradient along with these numbers to determine the strength of a trend. By having a gradient option, we

trend. By having a gradient option, we can now see gradually how the market trend shifts. This is powerful

trend shifts. This is powerful information that most indicators don't give you. Let me give you a practice

give you. Let me give you a practice scenario. Let's say you executed a buy

scenario. Let's say you executed a buy trade using this indicator and you wanted to hold the trade until take profit, but you noticed early on that the colors are becoming more red and the

candle numbers are lowering. This is the first sign that the market strength is weakening. What can you do with this

weakening. What can you do with this information? You can reduce your risk,

information? You can reduce your risk, adjust your stops, or exit your position completely to prepare for a possible reversal. This helps you stay ahead of

reversal. This helps you stay ahead of the game because you don't have to wait for a confirmed sell or buy signal.

you're reading the market momentum in real time. If these numbers seem

real time. If these numbers seem confusing to you, there's an easy fix.

Go into settings and enable ATR offset.

This will push the numbers away from the bars, so you might be able to see them more clearly. You also have the option

more clearly. You also have the option to uncheck show prediction values if you would just not like to see the numbers at all. If we scroll back up to the top

at all. If we scroll back up to the top of the settings panel, we can see that we have a few general settings available. The max bar back controls how

available. The max bar back controls how much data is used by the indicator to provide predictions. More is usually

provide predictions. More is usually better, but increasing this will slow down the indicator. So, I would recommend leaving it on default unless you have a specific reason to change it.

Color compression controls how gradual the candle colors change. Higher values

will result in sharper changes in candle coloring. I would recommend leaving this

coloring. I would recommend leaving this on one so we can see slowly as the market momentum shifts. This gives you more time to react and make better decisions. Show default exits will

decisions. Show default exits will provide you with a recommended exit for trades based on the last signal. These

exits are more suited for shorter term one:1 risk-to-reward trading given that the indicator by default is more optimized for longerterm trends. I would

recommend leaving this option off. You

can keep it enabled just to see when the indicator thinks it's a good time to exit so you have more confluence in your analysis. But we will not exit our

analysis. But we will not exit our positions based solely on this recommendation. The show trade stats

recommendation. The show trade stats provides an estimate of the current win rate based on the current settings being used by the indicator. As you can see at the moment, this indicator has this good

win rate. Note, this is just an estimate

win rate. Note, this is just an estimate based on the next four bars after execution and should not be used as an actual back tester. Next, the line that we see on the chart is a kernel

estimate. You can enable or disable this

estimate. You can enable or disable this if you scroll down to kernel settings.

The kernel acts as another form of confluence for trade entries and trailing positions. When price is

trailing positions. When price is bullish, it will be green and when bearish, it will be red. Always remember

that beside each option in settings is an icon that if highlighted will provide you with an explanation on what each option is for. This is incredibly helpful when you're first learning the

indicator. So, as mentioned, this

indicator. So, as mentioned, this indicator is more suited for longerterm trading such as swing trading. Let me

show you how to optimize it for this purpose. Go ahead and go to the filter

purpose. Go ahead and go to the filter settings and increase the regime filter to one. Increasing the regime option

to one. Increasing the regime option will attempt to filter out false signals, allowing us to now see longerterm trading opportunities more clearly. Here, we can see that we're

clearly. Here, we can see that we're receiving a buy signal. I will execute a buy and I will keep stops below the recent swing low. I will hold the position until the kernel changes color.

Here we can see we received an exit signal. But once again, these exit

signal. But once again, these exit signals are more suited for short-term scalping. So we will ignore that signal

scalping. So we will ignore that signal and hold. And here, now that the colonel

and hold. And here, now that the colonel is no longer bullish, I will exit my position. That is one of the many ways

position. That is one of the many ways to use the Lorencian classification indicator to ascertain long-term entries and trend direction. As you can see, the market is fluctuating a lot here. And

here we might have had a market structure shift, but if you're trading in the direction of the indicator, you could have waited for another bullish structure shift to stay in that trade or take another entry. So if you're

generally looking for longer time frame trades, this could be the AI indicator for you. However, you should be aware

for you. However, you should be aware that when doing replay on this indicator, due to how data is delivered, there is also a chance of repainting.

While it's rare, it is possible. So

always be careful when back testing.

First place, the ultimate AI trading system. And now the moment you've been

system. And now the moment you've been waiting for, the winner of my ranking.

In first place is this indicator whose algorithm analyzes trend direction, optimal entry zones, and even calculates your take-profit and stop-loss levels,

all in real time. We're going to cover three parts. First, I'll walk you

three parts. First, I'll walk you through all the key functions and settings that make this AI indicator so powerful. Then we'll see it in action on

powerful. Then we'll see it in action on a live Bitcoin chart with real-time analysis. Finally, we'll run a

analysis. Finally, we'll run a comprehensive back test to prove the reliability and consistency of this AI indicator. Because anyone can cherrypick

indicator. Because anyone can cherrypick winning trades, but only a truly robust system can deliver consistent results over hundreds of trades. If this video helps you out, drop a like and leave me

a comment. It takes you like 5 seconds,

a comment. It takes you like 5 seconds, but it means the world to me. For this

example, I'm using BTCUSD 1 hour time frame, but it works brilliantly across all markets and all time frames. Now,

click on the indicators tab and search for SFX Algo toolkit by Flux Charts.

This toolkit offers three distinct trading styles: scalper, day trader, and swing trader. Whether you're scalping on

swing trader. Whether you're scalping on the 1 minute charts with ultra reactive signals, day trading on the 1 hour setups like we're showing, or swing trading on those 4-hour charts with only

the strongest signals, this algorithm adapts perfectly to your trading style.

For our Bitcoin demonstration, we're using the day trader setting, which provides the perfect balance between signal frequency and reliability for the 1 hour time frame. Trend length, I select medium. This setting helps the

select medium. This setting helps the algorithm consider the right amount of historical data to make informed decisions without being too reactive to short-term noise. For our Bitcoin

short-term noise. For our Bitcoin demonstration, we're using a sensitivity of 12 with the AI optimizer disabled, but you could use the AI sensitivity optimizer that automatically adjusts

signal sensitivity based on current market conditions. You can either let

market conditions. You can either let the AI handle everything automatically or take full manual control if you prefer. Check TP and SL on key levels.

prefer. Check TP and SL on key levels.

Check the show TP and SL levels box and also extend all TP and SL lines. Check

re-entry after SL. Make sure you have all the takerits active. So check TP1, TP2, TP3, and SL for the stop loss as well, even if we will use a fixed SL of

3% giving us controlled risk. Now let's

move to the overlays. Activate the Gaus ribbon. This indicator will help you

ribbon. This indicator will help you identify the current trend. And don't

forget to check trend coloring. This

way, you'll have a color-coded trend visualization that makes everything clearer and more immediate. As for

volatility bands and retracement wave, we'll leave those unchecked for now to avoid cluttering the chart too much.

Now, let me show you this algorithm in action on a live Bitcoin chart, so you'll see exactly how these optimized settings perform in real market conditions. Here we have our first short

conditions. Here we have our first short signal. The algorithm immediately

signal. The algorithm immediately calculates and displays three take-profit levels and one stop-loss level. I'm opening a short position with

level. I'm opening a short position with a stop-loss and take-profit at levels automatically calculated. Our short

automatically calculated. Our short position has already hit the first two take-profit levels. Now that I've

take-profit levels. Now that I've already taken two take-profits, I move the stop-loss at break even, and I will let the position run to aim for the third take-profit. This is professional

third take-profit. This is professional money management in action. We've

secured profits and moved our stop to break even, meaning our remaining position has zero risk while we aim for that final target. Ah, we were so close.

But it's okay. The market came very close to our third take-profit, but didn't quite reach it. The algorithm has detected changing market conditions and generated a new long signal. This

demonstrates the systems ability to adapt to market direction changes without any manual intervention. The

green long signal appears with automatically calculated levels. Three

take-profit zones clearly marked. Fixed

stop-loss protection at 3%. Now that I have already taken two take-profits, I move the stop loss at break even and I will let the position run to aim for the third take-profit. No third take-profit

third take-profit. No third take-profit this time either. But notice something crucial. We're still profitable. This

crucial. We're still profitable. This

demonstrates why the algorithm strategy is so effective. Even when we don't hit all targets, the systematic approach ensures consistent profitability. Let's

run another trade. When the red short signal appears, our short position is performing exactly as the algorithm predicted. I move the stop loss at break

predicted. I move the stop loss at break even now that I have already taken two take-profits and I'll let the position run to aim for the third take-profit.

This time we did it. Third take-profit

hit. Let's see if we can get the fourth trade in a row. A long signal appears.

The algorithm's consistency in identifying these setups is remarkable.

Each trade follows the exact same systematic approach, removing all emotional decision-making from the process. The price action shows our long

process. The price action shows our long position moving successfully toward the take-profit targets. And there's our

take-profit targets. And there's our fourth consecutive profitable trade. Now

comes the moment of truth. We need to put this algorithm through testing. But

first, let me show you exactly how to configure the SFX back tester to get accurate unbiased results. To access the SFX back tester, you'll need to add it separately from the main SFX Algo

toolkit. Search for SFX back tester in

toolkit. Search for SFX back tester in the Trading View indicators and add it to your chart. This specialized tool is designed to test strategies systematically over historical data.

Trading style, day trader, trend length, medium-term sensitivity, 12, TP and SL on key levels. For long exit conditions,

optimized for Bitcoin, TP condition one, bullish signal at 40%. This captures

early profits when momentum starts shifting. TP condition two, bullish

shifting. TP condition two, bullish signal at 35%. TP condition three, bullish signal at 25%. Fixed SL 3.2%.

Move SL to BE after profit. Long TP2

protects profits once second target is hit. Short exit conditions. Since BTCUSD

hit. Short exit conditions. Since BTCUSD

is primarily a bullish pair, we have slightly different exit targets. TP

conditions, bearish signals at 50%, 30%, and 20%. fixed SL at 3% to cope with

and 20%. fixed SL at 3% to cope with situations of unexpected volatility.

Same break even management after TP2.

After a statistical analysis on 2 years of samples, these are the exit percentages that yield the most and have minimal risk. It's the result of

minimal risk. It's the result of extensive optimization testing made by me, so don't forget to leave a like.

Now, let's talk about what everyone wants to see, the results. Looking at

our BTCUSD back test spanning 2 years, the numbers are absolutely mind-blowing.

74% win rate across 156 total trades.

Profit factor of 1.492, meaning we make almost $1.50 for every dollar risked. Maximum draw down of only

dollar risked. Maximum draw down of only 10.76%.

Incredibly controlled risk. Total return

of plus 33.69% in a challenging market environment. But

here's what made this even more impressive. This is during a period that

impressive. This is during a period that included major Bitcoin volatility, including significant downturns. The

algorithm didn't just survive these conditions. It thrived. It's a premium

conditions. It thrived. It's a premium indicator. Normally, I don't dedicate

indicator. Normally, I don't dedicate videos to paid indicators, but this one is absolutely worth it. I made back the cost in just 10 minutes of use. Yes, you

heard me right, 10 minutes. And the best part, I've negotiated an exclusive discount for my subscribers. Simply

click the link in the description and use this code to get an amazing offer.

Thanks for watching and see you guys next time.

Loading...

Loading video analysis...